The number of people renting in London has steadily increased for the last twenty years with a dramatic surge in recent years. Dubbed ‘Generation Rent’, affordability issues are at the heart of why so many Brits across all ages and demographics are searching for a rented home rather than their own.
In London, there are now more private renters then there are mortgaged homeowners. A report conducted by PwC back in 2016 projected that by 2025 more than 60% of Londoners will be renting. The last few years has seen an aggressive shift in government policy with increased SDLT and the introduction of Section 24 which restricts landlord’s income tax relief.
These taxation shifts have undoubtedly impacted the market with recent research conducted by Rightmove indicated 24% of landlord will be selling at least one property from their current portfolio.
As conditions for private landlord have become increasingly challenging there has been an emergence from institutional capital looking to fill the burgeoning resupply for rental properties.
Recent research from the British Property Federation (BPF) shows 148,046 build to rent schemes have completed or are in the development pipeline across the UK. This is an increase of 20% against the same period last year and underlines investor confidence in the sector.
However this is no shiny new model, rather Britain adapting and introducing housing structures that are well engrained in other country’s housing DNA. In Germany over 60% of the adult population, or 26 million households rent privately and 40% of these households live in buildings that were built and managed specifically for rental by large institutions. Whilst across the pond in the States the multi-family sector is a mature slice of the market.
This sector is forecast for continued growth across the UK in the coming years. Whilst institutional capital is busily looking for the most compelling multi-million dollar development or acquisition opportunity, it is equally important for investors to establish a post completion letting and management plan.
Emphasis is naturally placed on providing more efficient management with a focus on improving the tenant experience. Resulting in longer tenancies and shorter voids – all adding to the development’s performance.
This is where technology has an obvious role to play and we at herddle are in a unique position to provide the most comprehensive tech enabled, service driven lettings and management solution.
Last week a roundtable discussion was held in London, where the future of Built to Rent and the role of PropTech was discussed. Richard Gains a panellist and Director of specialist Build to Rent consultancy ResiGains believes that, “with the number of approved developments and the way our cityscapes are changing, there is very clear evidence that Build to Rent is going to grow strongly in the coming years. Build to Rent developments trade as businesses, they have to operate to the bottom line, have to generate a strong return. In any business in 2020, the only way of driving greater efficiency, better customer experience and better income is technology. There is a straight line between the growth of Build to Rent and the importance of technology to run those businesses.”
How Herddle can help your BTR development
1) The complete process: herddle offers a full suite of desktop and mobile apps for the whole lettings and management process. Our intuitive apps also enable an integrated block management suite meaning you can efficiently centralise and run all components of your development from the one platform, with complete oversight.
2) Data rich insights: drill down data and performance metrics, create and filter your own reports. Understand how and why your portfolio performs, to make better investment decisions and drive returns.
3) Integrated receipts & payments: track account entries in real time, with statements in bank account format and full drill down. Filter your own reports.
4) Secure document library: contracts, compliance certificates & invoices added automatically, and upload anything else you want. Incredibly useful.
5) Straightforward maintenance: well-managed process for legitimate jobs; simple, intuitive, no gizmos. Specify your preferred contractors, accept quotes and see jobs getting done. Complete audit trails and payments fully integrated.
6) Happy tenants: tech-enabled for how we live today, our suite of mobile apps will mark you in tune with today’s world. A modern service with a vitality your tenants will love.
If you’re looking at either entering the sector or growing your Build to Rent portfolio in 2020 we’d love to discuss how Herddle can accelerate your portfolio.